Geodis Saves 25% on Packaging Supplies by Consolidating

Posted by: Eric Toth

Executive Summary

One of FlexPAC's greatest strengths is our ability to be a full-service solutions provider, allowing clients to consolidate their needs to one sole vendor. Just recently, FlexPAC was able to provide this value to a customer, Geodis. We also recently wrote a case study about this, so to see another example of how vendor consolidation can be helpful, you can read that study here. Geodis is a company that specializes in supply chain optimization but was still looking to improve their own packaging operations.

Geodis Saves 25% on Packaging Supplies by Consolidating

Previous Challenges

Geodis struggled with managing multiple vendor relationships, a time consuming and costly process. They also were concerned with high prices on products. By working with FlexPAC, they were able to consolidate their stretch film, tape, pallets, and boxes, all to one single vendor through FlexPAC. It costs between $700-$1400 to maintain a single vendor relationship, so consolidating to one vendor can become a massive cost saving. Consolidation also helps save employee time, as the ordering process is much simpler when there is only one point of contact.

FlexPAC's Process

In order to create a solution for Geodis, FlexPAC had to assess their packaging capabilities and needs. FlexPAC representatives worked very closely with the Geodis Purchasing Manager and Operations Supervisor. Working with these two parties ensured that Geodis was able to stay on budget, achieve the correct ordering amount, and have the products needed in order to complete their daily operations

Results

By finding a more efficient packaging products supplier, Geodis was able to see a 25% savings on their packaging materials by way of discounts for ordering more product lines. Not only was Geodis able to save on packaging, they also reduced their cost of maintaining vendor relationships. With Geodis consolidating from 4 vendors down to just one, they were also able to save between $2,400 and $5,600 in soft costs.